Sunday, September 04, 2011 9:38:39 AM
Investment Banks provide finance to development stage companies all the time because of their POTENTIAL to make money in the future. But you know that already. Why do you think Investment Banks and Venture Capital firms exist... to lend money to profitable companies that dont need it?
Of course SFIO has losses so far...they have spent their time and money developing a product, getting patents, ensuring FDA compliance and running their company. Now they have done the hard ground work and are in a position where they can legally sell their product and have protective patents and patents pending to protect their product. They need the finance and partnerships to do this correctly now.
In any case, I'm not blind to the postives or negatives surrounding this or any company. We do need more clarity as to the details of this potential deal. But to say there is no way that unprofitable companies can get financing is untrue. And to say that this company is over is untrue. This company has worked too hard and achieved too much and clearly George Roth is working hard to achieve his goals and make this company into what it should be.
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